Last updated: June 2025
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Boca Raton’s luxury housing market often requires buyers to evaluate high-value mortgage options. For homes priced near or above the conforming loan limit, choosing between a conventional and a jumbo mortgage is one of the most important financial decisions you'll make. Understanding the requirements, differences, and benefits of each loan type can help you secure the right mortgage for your Boca Raton property. Buying in Boca Raton? Start an application with MIDFLORIDA Credit Union. Why Boca Raton buyers often face higher home prices
Boca Raton is one of South Florida’s most affluent communities, with median home prices well above the state average. Waterfront properties, gated golf communities, and new luxury builds frequently list for $900,000 to $3 million. Even mid-tier homes in desirable zip codes, such as 33432 and 33496, can exceed conventional loan limits. This premium price environment means many buyers may encounter jumbo mortgage requirements during their home search. Whether you're purchasing a primary residence, second home, or investment property, understanding loan thresholds is essential before seeking pre-approval.
What is the difference between conventional and jumbo loans?
The primary difference between conventional and jumbo loans lies in their loan limits and qualification criteria.
- A conventional loan is a mortgage that stays within the maximum loan amount set by the Federal Housing Finance Agency (FHFA).
- A jumbo loan, also known as a non-conforming loan, exceeds those limits.
As of 2025, the conforming loan limit in most of Florida is $806,500 for a one-unit property. Loans above that amount are considered jumbo and subject to stricter underwriting rules.
| Feature | Conventional Loan | Jumbo Loan |
|---|---|---|
| Loan limit (FL - 2025) | Up to $806,500 | Above $806,500 |
| Down Payment | As low as 5% | Typically 10%-20% minimum |
| Credit score | Usually 620+ | 700+ often required |
| Documentation | Standard | Expanded income/assets |
| Interest rates | Slightly lower | May be higher, varies by market |
| Reserves required | 2-6 months typical | 6-12 months often required |
Conventional loans are eligible for purchase by Fannie Mae or Freddie Mac, while jumbo loans are held by the originating lender or sold on the private secondary market.
When a conventional loan is the right fit
Conventional loans are best for buyers whose mortgage needs fall within the FHFA limit and who meet standard qualification guidelines. These loans offer flexibility for first-time buyers, move-up buyers, and investors with strong credit.
Conventional loans offer:
- Lower down payments, especially for primary residences
- Fewer reserve requirements, meaning less cash needed on hand
- Simpler documentation, especially for salaried borrowers
- Streamlined processing, because they conform to government-backed guidelines
If you're buying a Boca Raton home priced at or below $806,500 and making a 10%–15% down payment, a conventional loan may still fit within the maximum loan amount. Buyers should carefully calculate their expected loan size, as even small pricing changes can push them into jumbo territory.
When you need a jumbo mortgage in Boca Raton
Jumbo loans are necessary for high-value homes that exceed the conforming loan limit, even after a reasonable down payment. These mortgages are common in Boca Raton’s luxury neighborhoods like The Sanctuary, Royal Palm Yacht & Country Club, and downtown oceanfront towers. Because lenders retain more risk with jumbo loans, they impose more conservative lending standards.
Borrowers typically must show:
- Higher credit scores, usually 700 or above
- Low debt-to-income ratios, often under 40%
- Larger down payments, starting at 10% and often 20%
- Substantial reserves, often 6–12 months of full housing costs
- Full income documentation, including tax returns and investment statements
Appraisals on jumbo homes may also require two independent valuations due to property uniqueness or market volatility.
Interest rates can be slightly higher or lower than conventional rates depending on market liquidity and lender competition.
Choosing the right loan type for your long-term strategy
When deciding between a conventional and jumbo loan in Boca Raton, your decision should align with your financial profile and goals:
- Choose a conventional loan if you qualify within limits, want a lower down payment, or are purchasing a primary residence in a mid-range price tier.
- Choose a jumbo loan if you're targeting a home above $1 million, can document high income and liquid assets, and plan to stay in the home long-term.
Real estate investors should consider how each loan type treats property use. Jumbo lenders may impose restrictions on short-term rentals or require stronger documentation for multi-unit properties. For second homes, conventional loans still offer favorable terms if the property is within the loan cap. Buyers focused on interest rates should compare actual APR quotes rather than assuming jumbo loans always cost more. In some high-income markets, jumbo loans can offer competitive or even better pricing than conventional loans.
FAQ: Boca Raton, Florida mortgages
What is the 2025 conforming loan limit in Florida?
The 2025 conforming loan limit for most Florida counties, including Palm Beach County, is $806,500 for a single-family home.
Can I buy a $1 million home with a conventional loan?
Only if your down payment brings the loan amount below $806,500 (as of 2025), otherwise, you will need a jumbo mortgage.
How do jumbo loan interest rates compare to conventional?
Rates vary by market conditions. Jumbo loans can be slightly higher, but well-qualified borrowers may find them comparable to conventional rates.
Do jumbo loans require more documentation?
Yes. Expect to provide full tax returns, asset statements, detailed employment history, and proof of reserves.
Can investors qualify for jumbo loans in Boca Raton?
Yes, but they will need strong credit, higher down payments, and rental documentation. Some lenders also limit loan-to-value ratios more strictly for non-owner-occupied homes.
Boca Raton homes are within reach
Boca Raton’s real estate market often demands high-value financing. Understanding the differences between conventional and jumbo loans helps you plan for success in a competitive environment. Whether you’re financing a luxury home, a coastal property, or a second residence, choosing the right loan type ensures long-term financial stability. Discover which homes in Boca Raton, Florida, are available for you. Start an application with MIDFLORIDA Credit Union today.
